Sears Holdings Corp. reported a 99% drop in third quarter profit, due to a US$223 million drop in gross margin. Sales for the third quarter ended Nov. 3, 2007 slipped 3% to $11.5 billion from $11.9 billion in the fiscal 2006 period. For the first three quarters, profits were $394 million, or $2.66 per share, down from $670 million, or $4.29 per share, a year earlier. Revenue declined 3% to $35.5 billion from $36.7 billion.
Aylwin Lewis, Sears Holdings' chief executive, said in a news release, "We are very disappointed in our performance for the third quarter. We cannot blame our results entirely on the retail and macro-economic environments. We have much on which to improve and are working hard to do so."